I think you too should explore Honda Dreamyuga or Twister (depending on which look you prefer) considering the milage factor (just like how I am looking for). I have not concluded yet, but more or less settled for DreamYuga for the moment. You could take a look at the comparison table put by me earlier

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Visited the YAMAHA showroom today for the 3rd servicing of my SS. Saw both the new colors of the SS. Looked quite impressive from naked eye!

Replied on the Gladiator thread...

I am going to leave out Glamour and Shine here you do not seem to be looking at those very intently (& for good reason).

If your main concern is mileage then just stick to the most efficient bike in the class!!

Discover 125ST will give best mileage, looks good, is comfortable, is the most powerful in the class (for your week end long runs) what more do you want? Yes the rear tyre is thin. Well guess what, it is the same thickness as Yamaha SS..!! it only looks thinner because of the black plastic mud guard.

Regarding Yamaha SS, the main reason it gives a plush ride is because of the seat. It is literally soft like a sofa, very comfortable, but apart from that everything else is same. handling wise 125ST & SS are similar. 125ST will make 13ps where as SS will make 11, a difference of almost 2bhp is very much noticeable. if you are ready to go for lesser power then it is better that you go for Discover 100T which makes 10.2 (only 0.8 less than SS, not noticeable) but will give you 70kmpl with all features of Discover 125ST.

Considering your basic need, I would rather suggest a 100T to you. 40-60km/hr would be comfortable and if you consider owning an activa like maintaining a petrol tanker, it would give you best of both the worlds. This would suffice your needs as of today. But later.. Humm..
Oh, while typing I realized, plasmabhai has already suggested this bike to you.

Re: Best 125cc Bike for pune traffic

Well thanks for the suggestion plasmabhai. I always wanted to have bike like 125ST which not only falls in 125 segment but does have a great sporty look . But when I asked opinion about this bike to my friends 7/10 people told me avoid Bajaj .... even some of the reviews on the 125ST owner segment suggests that the bike does have some heat issue along with tyres as you mentioned above. Tyres could be replaced but is this bike worth to be trusted , If I am looking to ride it for coming 6-7 years .. (well thats the time I used Activa)...